Yes, spend time with your kids, but try not to smother them, and ensure they have a diverse set of interactions with a range of people.
All of this is of course is luxurious thinking for people with wealth and skills that stay in demand.
At that point, kids start yearning to build their own identities. At least some of the time. They want to make their own friends; find their own obsessions and solve (or create) their own problems. They still check in with parents a lot. The rubber band of independence stretches and snaps, again and again.
You realize that no one is a perfect parent, because the concept of perfection collapses on itself. Part of the way that kids master independence is to be annoyed at their parents -- enough so that they walk home instead of waiting for the ride. If we're too good at parenting, the chaos and casual cruelty of the outside world becomes unbearable and they never get the hang of running their own lives.
When you have a kid. Drop EVERYTHING in your life, take off (completely) from work and spend your days with them. For at least a month or two. Make breakfast, watch little kid shows, all that.
Yeah money, but you have decades to earn money. Those couple months you won't get back.